Union levels charges at nursing home provider

August 20, 2007

The Teamsters Union has sent a letter to the investors of PharMerica, warning them that the long-term care provider's close ties with AmerisourceBergen might not be in the best interest of shareholders. According to the union, AmerisourceBergen has been linked to problems with drug counterfeiting, an alleged illegal rebate scheme, and loss of controlled substances in several of its warehouses.

The Teamsters Union has sent a letter to the investors of PharMerica, warning them that the long-term care provider's close ties with AmerisourceBergen might not be in the best interest of shareholders. What's wrong with the wholesaler? According to the union, AmerisourceBergen has been linked to problems with drug counterfeiting, an alleged illegal rebate scheme, and loss of controlled substances in several of its warehouses. The union, which represents workers at several AmerisourceBergen distribution centers, objected to a prime vendor agreement PharMerica has signed with the wholesaler, which commits the nursing home provider to using the distributor for multiple years. Drug Topics contacted AmerisourceBergen for a reaction, but the company did not respond at press time. PharMerica Corp. is a new independent publicly traded company spun off by AmerisourceBergen and Kindred Healthcare, which combined their institutional pharmacy businesses to create the Louisville, Ky., firm. Operating more than 120 institutional pharmacies in more than 40 states, PharMerica started trading on Aug. 1.

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